Rupee - March 30, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

The Indian Rupee depreciated against the U.S. Dollar this Tuesday as the greenback continued to strengthen along with hardening U.S. bond yields.

The Rupee ended at 73.38 to the dollar against 72.51 in the previous session. The Rupee weakened to an intraday low of 73.43, its lowest level since March 9.

While, month end importer demand and reduced fiscal year-end exporter dollar selling also weighed on the local currency this Tuesday.

Meanwhile, other Asian currencies were also down against the greenback and weighed on sentiments.

Additionally, worries over second wave of coronavirus infections in India have also waned on risk appetite and kept investors away from the markets.

The one-year forward premium was at 3.71 rupees, against 3.82 rupees in the previous session.

Technically, the USDINR Spot pair has given a strong breakout above a pivotal level at 73.00 indicating a strong upside momentum in the counter. Resistance is at 73.50-73.80 levels. The USDINR Spot pair INR Spot could trade in a range of 73.20-73.70 levels in coming session.

The Dollar Index gained against major currencies on Tuesday afternoon session in Asia as accelerating U.S. vaccinations and plans for a major stimulus package reinforced the idea that inflation will increase in the U.S. and in turn push the Treasury yields higher.

Technically, the Dollar Index has given a fresh breakout above 93.00 levels indicating a strong uptrend up to 93.50-93.60 levels. Support is at 92.90-92.75 levels.

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Source : Equity Bulls

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